Microsoft’s exit rumors spark storm in Pakistan’s tech sector

Speculation that global tech giant Microsoft is shutting down in Pakistan has sent ripples through the country’s IT industry, triggering widespread media coverage and raising serious questions about the nature of the company’s operations in the country.

Kamran Khan, in the latest episode of "On My Radar", reports that the storm began after a LinkedIn post by Jawad Rehman, Microsoft Pakistan’s former country head. In the post, Rehman wrote “An era ends,” claiming that Microsoft is winding down its operations in Pakistan and has already informed some employees.

Rehman, who helped set up Microsoft’s presence in Pakistan in 2000, noted that he spent seven years building a strong local team and delivering services to customers across the country.

Following the viral post, several news outlets ran sensational headlines, suggesting that Microsoft had formally shut down its operations after 25 years and that thousands of engineers would be laid off. However, no official confirmation or denial has been issued by Microsoft so far.

Pakistan’s Ministry of IT and Telecommunication, however, issued a statement noting that it had been informed Microsoft is currently reviewing the future of its liaison office in Pakistan. The ministry clarified that this move is part of a global restructuring strategy aimed at optimizing the company’s international workforce.

According to available information, Microsoft’s commercial and licensing agreements for Pakistan are managed through its European headquarters in Ireland, while local service delivery is handled by its certified partners within the country.

This situation has given rise to a series of crucial questions:

• Has Microsoft ever maintained a true operational footprint in Pakistan?
• Did the company make any direct investments here?
• Was there an engineering hub or delivery center operating locally?
• Was Microsoft registered as a foreign company with the relevant authorities?
• Were employees paid under Pakistan’s domestic payroll regulations?
• Did Microsoft contribute tax revenues to the Federal Board of Revenue (FBR)?
• Is there any record of the company’s import-export activity with the State Bank of Pakistan?